Protect Yourself! Here’s How.

Injury and illness are a fact of life.

Sadly, we all know someone who has been diagnosed with cancer, was injured in a car accident, experienced a bout of depression or lost a partner suddenly.

No-one wants to think about worse case scenarios but the way to feel financially secure is to plan for the worst and hope for the best. Taking out the right level of insurance will give you peace of mind and protect you when you need it most.

When something unexpected happens, the last thing you need to be worrying about is money.

During 2015, Life insurance companies paid out almost $27.6 million every working day. That’s $6.9 Billion for the entire year. Over the last 10 calendar years they have paid almost $40 billion in claims.

Not one of these people expected to claim on their insurance.

Perhaps you think you have enough insurance inside your super? The sad fact is only 30% of young families Life insurance needs are covered by default within superannuation, and 60% families could not cope more than 12 months should main breadwinning parent die.

Maybe you think the Government will look after you? From 20th March 2016 Centrelink will pay a maximum disability pension of $794.80 (single) and $599.10 (each) for couples. Imagine trying to live on that amount of money for an extended period of time, while you were sick or injured. It’s a frightening prospect.

When it comes to protecting yourself and your family you need to ask yourself these questions

What would my life look like without my income if I was sick or injured?

Could my family survive on one income?

Could I afford to pay the mortgage/rent/car loan/medical expenses and put food on the table?

Could I keep the kids in school?

Could I afford the best medical care?

So what are the types of Insurance should you be considering?

Income Protection

An income protection policy will give you the peace of mind knowing if you were unable to work because of illness or injury, you would receive up to 75% of your income until you return to work. It can also to contribute to superannuation while you are on claim.

Think about it, almost everything depends on your income. What if sickness or injury prevented you from earning income for months or even years? Even when the income stops the bills don’t, mortgage repayments/rent, telephone bills, medical and everyday living expenses just keep coming.

No one enjoys paying for insurance, but income protection really is one of the “must-haves”. Without it, should illness or injury occur you could potentially wipe out your savings, just to cover basic living expenses. You might even go into debt. Income Protection It is there to protect and preserve your lifestyle.

Life Insurance – pays a lump sum on your death or terminal illness. It can cover your mortgage and any other debts and provides a lump sum that can be invested to meet the ongoing financial obligations and the education of your children.

Total and Permanent Disability Insurance – pays a lump sum if you become disabled for a period of three months or more and are unable to ever work again. You can use this lump sum to pay off your mortgage and debts, cover medical costs, renovate your home, and invest so that you have an annual income to help maintain your lifestyle.

Trauma Insurance – pays a lump sum on diagnosis of a range of serious illnesses, including heart attack, stroke and malignant cancer. These benefit payments can be used for specialist medical attention, covering the cost of home modifications, repaying debts such as your mortgage or travel for recuperation.

Information contained in this document is of a general nature only. It does not constitute financial advice. The information does not take into account your objectives, needs and circumstances. We are not Registered Tax (Financial) Advisers. If you intend to rely on this tax advice you should request advice from a Registered Tax (Financial) Adviser or a Registered Tax Agent. We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document. Subject to law, Capstone Financial Planning nor their directors or employees or authorised representatives: • gives any representation or warranty as to the reliability, accuracy or completeness of the information; or• accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document.

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